* Dollar index falls to 1-1/2-month low, breaks 100-day MA
* Euro rises to 2-week peak vs dollar amid hopes for Brexit deal
* Traders see Fed rate hikes despite CPI rising less than forecast
* ECB, BOE leave rates changed; Turkey cenbank uncorks rate hike
* Graphic: World FX rates in 2018
(Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, Sept 13 (Reuters) - The dollar fell to a near
1-1/2-month low against a group of currencies on Thursday after data
showed U.S. consumer prices increased less than expected in August,
paring traders' outlook that domestic inflation is accelerating.
Signs of reduced trade tensions between China and the United
States after Washington reached out to Beijing on Wednesday to restart
trade talks also pressured the greenback.
"The safe-haven demand for the dollar has diminished the past
two days on positive trade developments between U.S. and China,"
said Peter Ng, senior currency trader at Silicon Valley Bank in Santa
Clara, California. "Today's CPI miss has added downward pressure
on the dollar."
The U.S. Labor Department said its Consumer Price Index, the
government's broadest inflation gauge, rose 0.2 percent in August,
less than the 0.3 percent increase projected by analysts polled by
Despite the CPI miss, traders did not change their view the
Federal Reserve would raise key short-term interest rates by a quarter
point to 2.00 percent-2.25 percent at its policy meeting in two weeks.
They also anticipated the Fed would increase rates for a fourth time
this year in December.
An index that tracks the dollar against six major rivals
hit a near six-week low at 94.428. At 10:40 a.m. (1440 GMT), it was
down 0.19 percent at 94.623.
The greenback weakened for a fourth straight day against the euro
and sterling on hopes that Britain and the European Union would hammer
out trade terms before the Britain leaves the economic bloc next
The common currency rose to a two-week peak against the dollar at
$1.17010 before subsiding to $1.16780, up 0.44 percent on the day, EBS
The pound hit a six-week high versus the dollar at $1.3124. It was
last at $1.3095, up 0.36 percent.
The European Central Bank and Bank of England as expected left
interest rates unchanged on Thursday.
The ECB signaled it was on track to dial back its bond purchases
later this year, while the BOE highlighted concerns from Brexit.
Turkey's central bank raised its benchmark rate by 625 basis
points on Thursday in a bid to shore up the lira and soothe investor
concern about President Tayyip Erdogan's influence on monetary policy.
Turkey's lira rallied 2.6 percent at 66.1800 per dollar
. It had slumped to a record low of 7.2400 in mid-August, raising
investor expectations for the central bank to tighten monetary policy
and arrest the currency's slide. ========================================================
Currency bid prices at 10:40AM (1440 GMT)
Description RIC Last U.S. Close Pct Change
YTD Pct High Bid Low Bid
Euro/Dollar EUR= $1.1675 $1.1624 +0.44%
+0.00% +1.1701 +1.1609
Dollar/Yen JPY= 111.8500 111.2500 +0.54%
+0.00% +111.9100 +111.1700
Euro/Yen EURJPY= 130.60 129.34 +0.97%
+0.00% +130.8000 +129.2700
Dollar/Swiss CHF= 0.9675 0.9704 -0.30%
+0.00% +0.9708 +0.9659
Sterling/Dollar GBP= 1.3094 1.3046 +0.37%
+0.00% +1.3121 +1.3027
Dollar/Canadian CAD= 1.3022 1.2995 +0.21%
+0.00% +1.3025 +1.2975
Australian/Doll AUD= 0.7200 0.7168 +0.45%
+0.00% +0.7229 +0.7166
Euro/Swiss EURCHF= 1.1296 1.1284 +0.11%
+0.00% +1.1316 +1.1263
Euro/Sterling EURGBP= 0.8916 0.8911 +0.06%
+0.00% +0.8931 +0.8894
NZ Dollar/Dolar NZD= 0.6564 0.6562 +0.03%
+0.00% +0.6589 +0.6544
Dollar/Norway NOK= 8.2225 8.2579 -0.43%
+0.00% +8.2642 +8.1954
Euro/Norway EURNOK= 9.6015 9.6012 +0.00%
+0.00% +9.6075 +9.5642
Dollar/Sweden SEK= 8.9490 8.9798 +0.10%
+0.00% +8.9947 +8.9290
Euro/Sweden EURSEK= 10.4502 10.4400 +0.10%
+0.00% +10.4603 +10.4319
Europe Positions and Surprise
(Additional reporting by Saikat Chatterjee in LONDON, Shinichi
Saoshiro in TOKYO; Editing by Meredith Mazzilli)
((firstname.lastname@example.org; +1 646 223 6313; Reuters